NOW Inc. soars over 8% on beating Q2 expectations, reaffirmed 2025 guidance

HOUSTON - On Wednesday, NOW Inc. (NYSE:DNOW) reported second quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.27, surpassing the consensus estimate of $0.22. Revenue reached $628 million, above analyst projections of $609.6 million and up 5% sequentially, though slightly below the $633 million reported in the same quarter last year.

The energy and industrial products supplier saw its shares edge up 8.41% following the announcement, driven by the earnings beat and the company’s recently announced merger with MRC Global (NYSE:MRC).

Net income attributable to DNOW was $25 million, or $0.23 per diluted share. On an adjusted basis, excluding transaction-related charges and restructuring costs, net income was $29 million. EBITDA excluding other costs reached $51 million, representing 8.1% of revenue, which the company noted was its best second-quarter EBITDA result since becoming a public company.

"Our team continues to execute our strategic plan, generating $628 million in revenue for the second quarter of 2025, up 5% sequentially, at the top-end of our guided range," said David Cherechinsky, President and CEO of DNOW. "This transaction will create a premier energy industrial solutions provider with a highly complementary, balanced portfolio of business and a diversified customer base fortifying long-term profitability and cash flow generation."

The company maintained strong liquidity with $232 million in cash and cash equivalents and zero long-term debt as of June 30, with total liquidity of approximately $582 million. DNOW also continued its share repurchase program, buying back $19 million of common stock during the quarter.

Based on its first-half performance, management reaffirmed its full-year 2025 revenue and EBITDA guidance, as well as its free cash flow target of $150 million for the year.

The company’s pending all-stock acquisition of MRC Global, valued at approximately $1.5 billion, is expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals.

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